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Brussels Attacks Clip Delta's Results
Source: Dow Jones News
Delta Air Lines Inc. on Monday said the deadly terrorist attack in Brussels had a $5 million negative impact on its March results, leading to a decline in a closely followed revenue metric.
Brussels' main airport reopened on Sunday to a small number of passenger flights after being closed since twin suicide bombings devastated its departure hall on March 22, killing at least 16 people and injuring scores more. An equal number died in the center of the Belgian capital in a bombing attack on a subway station.
Delta said its consolidated passenger unit revenue—a key measure of performance for the airline sector—fell 5% in March from a year earlier. For the first quarter, unit revenue is projected to have declined by about 4.5%
Delta said its overall traffic rose 1.2 in March. Capacity increased 1.5% for the month, while load factor, or the percentage of seats, slipped to 84.8% from 85% a year earlier.
The carrier said it projects it paid an adjusted $1.33 to $1.37 a gallon for fuel in the first quarter. Sustained low fuel costs around the world have boosted profits for airlines, as fuel is one of their biggest expenses.
For the first quarter last year, Delta generated $9.39 billion in revenue. Analysts polled by Thomson Reuters expect $9.24 billion in revenue when the company reports its first-quarter results.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
April 04, 2016 11:15 ET (15:15 GMT)
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